SHANGHAI, Aug. 27 (SMM) – SHFE 1410 zinc contract prices opened at RMB 16,770/mt Monday evening, then fell to RMB 16,710/mt as a large number of shorts entered the market, but found support at the 30-day moving average before fluctuating between RMB 16,730-16,750/mt, and closing at RMB 16,745/mt, down RMB 5/mt or 0.03%. Trading volumes decreased by 152,054 to 86,396 lots, and total positions grew by 1,354 to 200,908 lots. SHFE 1411 zinc contracts became the most actively traded contracts this afternoon. SHFE 1410 zinc contract prices opened at RMB 16,765/mt, then weakened to as low as RMB 16,700/mt. But as LME zinc prices leveled off, a large number of longs entered the market, pushing up SHFE three-month zinc contract prices, and closing at RMB 16,970/mt, up RMB 195/mt or 1.16%. Trading volumes decreased by 16,974 lots, to 171,266 lots, and total positions increased by 22,328 lots to 171,266 lots. SHFE three-month zinc contract prices are expected to test support from RMB 17,000/mt.
#0 zinc prices were between RMB 16,740-16,780/mt, with spot premiums between RMB 30-60/mt against SHFE 1410 zinc contract prices, and spot premiums against SHFE 1411 zinc contract prices were RMB 10-40/mt. #1 zinc prices were between RMB 16,660-16,690/mt. SHFE 1411 zinc contract prices remained largely unchanged, with spot premiums down slightly. Some brands were still in short supply, with the price spread between different brands narrowing. This left speculative activities muted, and downstream demand remained soft, keeping transactions quiet. Trading was mainly made among traders. Shuangyan branded #0 zinc prices were RMB 16,760-16,780/mt, with RMB 16,740-16,760/mt for Yuguang, Qinxin, Qilin and Hongye zinc. Undeliverable #0 zinc prices were 16,710-16,720/mt. AZ zinc prices were RMB 16,710/mt, and RMB 16,680-16,710/mt for other imported zinc. SHFE 1411 zinc contract prices pointed toward RMB 17,000/mt, and cargo holders were held back goods due to the lack of arbitrage opportunities, and kept prices firm. Downstream buyers also took a wait-and-see attitude, leaving trades muted.